Professional hair care products are used by professionals/stylists for various hair services in the salon. These products are sold over the salon counter and also through retail stores such as specialty beauty stores, pharmacy stores, online and others. The U.S. professional hair care products market is segmented on the basis of services provided in salons such as coloring, shampoo & conditioners, perming & straightening and styling. The professional hair care products market in the U.S. is estimated to grow at a CAGR of 2.6% to reach $3133.9m by 2020.

U.S. has the highest disposable income of $41,355 per household among the OECD countries. 41% of salons present in the U.S. are organized. Favorable socio-economic factors, high internet penetration, and consumer awareness make it a global leader in the professional hair care market. The U.S. hair salon landscape is transitioning from large salon chain model to booth rental model with 50% of the hair salons adopting the latter model in 2014. The number of booth rental salons has risen owing to stronger demand for personalized hair care services. This phenomenon has also propelled sales at beauty stores such as Sally Beauty.

Shampoo and conditioning segment holds the largest share in the U.S. professional hair care market, followed closely by coloring. Coloring, deep conditioning and Brazilian and keratin straightening services exhibit the highest demand in the U.S. hair salons. Coloring is the axis service in the U.S. hair salons which contributes maximum revenue as well as footfalls. The demand for perming and straightening services is restrained owing to the Americans’ preference for temporary smoothening using professional hair oil prior to using hot rollers. Take-home sales of shampoos, conditioners and hair oils are still robust but exhibits sluggish growth. Private labels of retail beauty stores and hair salon chains exhibit strong growth. Owing to frequent hair coloring and increase in hair and scalp related concerns has resulted in increasing demand for treatment products.

L’Oreal and Procter and Gamble are the frontrunners in the U.S. professional hair care industry. The top 5 players account for about 70% of the market share. L’Oreal gains heavy profits from its strong shampoo and conditioning portfolio and strong distribution network. Henkel after the acquisition of Alterna, Kenra and Sexy Hair brands for TSG Consumer Partners LLC in 2014 makes way into the elite group of five in the U.S. professional hair care market.

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